§490:4A-204  Refund of payment and duty of
customer to report with respect to unauthorized payment order.  (a)  If a
receiving bank accepts a payment order issued in the name of its customer as
sender which is (i) not authorized and not effective as the order of the
customer under section 490:4A-202, or (ii) not enforceable, in whole or in
part, against the customer under section 490:4A-203, the bank shall refund any
payment of the payment order received from the customer to the extent the bank
is not entitled to enforce payment and shall pay interest on the refundable
amount calculated from the date the bank received payment to the date of the
refund.  However, the customer is not entitled to interest from the bank on the
amount to be refunded if the customer fails to exercise ordinary care to
determine that the order was not authorized by the customer and to notify the
bank of the relevant facts within a reasonable time not exceeding ninety days
after the date the customer received notification from the bank that the order
was accepted or that the customer's account was debited with respect to the
order.  The bank is not entitled to any recovery from the customer on account
of a failure by the customer to give notification as stated in this section.



(b)  Reasonable time under subsection (a) may
be fixed by agreement as stated in section 490:1-302(b), but the obligation of
a receiving bank to refund payment as stated in subsection (a) may not
otherwise be varied by agreement. [L 1991, c 41, pt of §1; am L 2004, c 162,
§14]